ETHUSD Begins Correction Phase as Price Leaves the Oversold State

ETHUSD begins a correction phase as the price leaves the oversold state. A trend reversal occurred on April 19, 2023, after a distribution phase at the $2143.000 supply zone. The emergence of the trend reversal led to a change of character, which marked the beginning of the downward motive trend. In fractals, ETHUSD declined, invalidating weak lows on June 15, 2023.

 

On July 14, 2023, the downtrend resumed after a significant retracement. This marked the third impulse of the motive trend, which happened to be the longest of the impulse trends. A bearish order block formed in the course of the third impulse. The bearish order block is likely to initiate the fifth trend before the motive trend ends.

ETH Key Levels

Demand Levels: $1620.000, $1462.000, $1370.000
Supply Levels: $1929.000, $2029.000, $2143.000

What are the Indicators Saying?

As July 2023 came to an end, the Moving Average Period 18 crossed the Moving Average Period 40 to the downside. This implied that the bears were already back in the market as the downtrend resumed. However, owing to the indication of the Stochastic Oscillator, a significant retracement to the upside is needed. Nevertheless, the downtrend is likely to continue as soon as the premium zone is reached.

 

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